Globe Savings v. United States
Our attorneys garnered a US$33 million lost-profits judgment in favor of Globe Savings Bank, the acquirer in a large "Winstar"-style transaction that closed in 1986. This case is particularly noteworthy because lost-profits awards in breach-of-contract actions against the government are uncommon generally and have been especially rare in "Winstar" cases. Indeed, other firms presented lost profits claims in dozens of similar cases, but until Globe, none had garnered a significant award. Working with two experts, Globe's former CFO and a prominent Wall Street mortgage-backed securities (MBS) analyst, our lawyers developed the winning damages theory in-house and at minimal cost to the client. The firm's trial team also neutralized a phalanx of five government experts, including Frank Fabozzi, who is arguably the nation's most prominent academic expert on MBS issues. The damages trial lasted four weeks. The damages decisions are reported at 65 Fed.Cl. 330, 189 Fed.Appx. 964, and 74 Fed. Cl. 736. The Court also awarded Globe more than US$100,000 in costs.